1987 - Year of the shrinking market?
CSR, the diversified sugar, energy and resources group and one of the more active Australian issuers in international markets in recent years, plans to have a quieter time in 1987.
"We expect borrowings to be reduced on a net basis,' said treasurer Geoge Devrell.
Having raised A$200 million from a share placement and a one-for-ten rights issue, Devrell is not expecting much movement on the equity front either. CSR will net a further A$90 million in the next two to five years from shareholders' options which formed part of the rights issue package.
"That gives us good liquidity in the current year. Our borrowing capacity will be up, but it is a question of whether we need to exercise it.'
CSR's financial year beginning March 1987 will be the first in which the company faces much of the interest costs from refinancing its Delhi Oil subsidiary. Said Devrell: "That is a bit of a dampener on our enthusiasm to borrow more.'
Additionally, he said, the company had very little debt maturing in 1987/88 that would need refinancing.